Contractor and construction invoice template: stages, variations and retention

How to make a contractor / construction invoice

1. Pick your country. Use the country selector in the editor to set the currency, date format and tax labels. The sample lines below are only a starting point for contractors and builders.
2. Enter your business details. Add your name, address, contact details, tax or registration number and a logo if you have one. Save them as a business profile to reuse next time.
3. Add the customer. Enter the customer’s name and address, and a PO or job reference if they gave you one. Save the customer for repeat jobs.
4. Edit the line items. Replace the sample contractor / construction lines with your own work. Quantity can be hours, days, units or 1 for a fixed fee. Add a tax rate if you are registered.
5. Add payment details and terms. Choose the payment terms, add bank or payment-link details and your notes. A due date is calculated from the terms.
6. Choose a look and export. Pick a template and colour, then download the PDF, print it, or save a PNG. Your work is saved in your browser as you type.

Why construction invoices need more structure

Construction billing is different from most other trades because of its size, its length and the number of parties involved. A job might run for months, with money flowing in stages, with changes along the way, and sometimes with part of the payment held back as retention until a defect period ends. A construction invoice should therefore refer to the contract or quote, state which stage or period it covers, list approved variations separately and make any retention visible.

The sample uses the Corporate layout, which has a structured header and a numbered table that finance departments like. The three lines are a staged payment from a quote, an approved variation, and a waste-disposal cost.

What a contractor invoice should include

• Contract or quote reference and the stage or valuation period.
• Work completed to date against the schedule of payments.
• Variations: each with reference, approval date and price.
• Materials and plant, where billed separately.
• Retention held, if the contract has one, and the amount to be released later.
• Tax details: VAT, GST/HST or sales tax, and any special construction rules.
• Payment due date in line with the contract and the local construction payment law.

Billing structures in construction

Use the quote generator to set out stages before work starts, and the milestone billing guide to plan them.

Example contractor invoice

Figures are examples only. Currency, tax rate and labels change in the editor to suit your country.

The stage payment references the quote number, and the variation was approved in writing before it was done.

Construction-specific tax and payment rules

Construction payments are heavily regulated in many countries. A few examples are below; they are not a full list and details change, so use the official links.

• United Kingdom: the Construction Industry Scheme (CIS) requires contractors to deduct tax from payments to registered subcontractors for labour, and the VAT domestic reverse charge applies to many supplies of construction services between VAT-registered, CIS-registered businesses. HMRC guidance sets out which supplies it covers.
• United States: contractors commonly bill progress payments with a percentage complete and retainage. Lien rights have strict notice deadlines that vary by state; ask a local professional. A 1099-NEC may be issued to subcontractors.
• Canada: provinces have construction lien or prompt-payment laws. Ontario’s Construction Act, for example, has a “proper invoice” concept and set payment timeframes. Check your province.
• Australia: security-of-payment laws set rules for payment claims, and the ATO’s Taxable Payments Annual Report covers some building and construction payments.
• New Zealand: the Construction Contracts Act sets rules for payment claims and retention money. Check Building Performance or MBIE guidance.

Common construction invoicing mistakes

• Starting a variation without written approval.
• Invoicing a stage that is not yet complete, which gives the client grounds to dispute it.
• Missing a statutory notice period for payment claims.
• Not showing retention clearly, then losing track of the release date.
• Not keeping photos and sign-off sheets for each stage.

Getting paid faster as a contractor

Invoice at each stage on the day it is signed off, and keep the schedule of payments visible in the contract. Ask for a deposit before ordering materials. Put the interest rate for late payment in the contract; see late fees and interest on invoices. If you are not paid, follow the sequence in what to do when a client does not pay.

Glossary

Retention

Money held back until the defects period has ended.

Variation

A change to the agreed scope of work, with its own price.

Progress claim

A request for payment for work completed to date.

CIS

Construction Industry Scheme in the UK.

Related topics

• contractor invoice template
• builder invoice PDF
• construction invoice
• subcontractor invoice
• progress payment invoice
• variation invoice
• retention invoice
• building work invoice